Kamat Hotels Q3 FY26: Revenue up 12%, PAT slips

Key takeaway from the December 2025 quarter

Kamat Hotels (India) Ltd (NSE: KAMATHOTEL) reported stronger top-line performance in the December 2025 quarter (Q3 FY26) but saw pressure on profitability compared with the same period last year. Consolidated revenue for the quarter was reported around ₹118 crore, reflecting roughly a 12% year-on-year increase. At the same time, EBITDA and profit after tax (PAT) declined year-on-year as expenses rose faster than revenue.

The company’s quarter also drew market attention due to a sharp stock reaction. A market report noted the share fell 9.04% to ₹200.35 after the results, reflecting investor focus on margin compression and profit decline despite higher operating income.

What the company said in its performance update

In management remarks shared with investors, the company said consolidated revenue for Q3 FY26 stood at ₹118 crore, up by about 12% year-on-year. It reported EBITDA of ₹39 crore for the quarter with an EBITDA margin of 33.14%. At the PAT level, management described profit of about ₹19 crore versus about ₹26 crore in the corresponding quarter of the previous year, with a PAT margin of 16.23%.

For the nine-month period ended December 31, 2025 (9M FY26), the company reported consolidated revenue of ₹275.5 crore (also referenced as ₹276 crore in remarks), up around 4% year-on-year. For 9M FY26, EBITDA was stated at about ₹65 crore with an EBITDA margin of 23.56%, and PAT was described at about ₹21 crore, translating to a net margin of 7.66%.

Q3 FY26 financials: revenue rose, expenses rose faster

A detailed financial snapshot for Q3 FY26 shows operational income rising to ₹117.7 crore from ₹105.5 crore in Q3 FY25. Over the same period, total expenses increased sharply to ₹78.7 crore from ₹61.3 crore. EBITDA declined to ₹39.0 crore from ₹44.2 crore, and the EBITDA margin contracted to 33.14% from 41.90%.

PAT also fell year-on-year, with the table-based figure at ₹19.1 crore in Q3 FY26 versus ₹26.2 crore in Q3 FY25. The same table showed a steeper decline for the nine-month period, with 9M FY26 PAT at ₹21.1 crore versus ₹35.6 crore in 9M FY25.

Net profit figures in circulation: ₹19.06 crore vs ₹17.30 crore

Multiple net profit numbers were cited across the provided updates. One results summary stated PAT of ₹19.06 crore in Q3 FY26, recovering from a loss of ₹2.19 crore in Q2 FY26 and down 27.2% from ₹26.18 crore in Q3 FY25. The same note said profit before tax (PBT) stood at ₹22.95 crore in Q3 FY26, compared with a loss of ₹0.54 crore in the previous quarter and ₹35.38 crore in Q3 FY25, with tax expense of ₹3.89 crore.

Separately, a market report cited consolidated net profit of ₹17.30 crore in Q3 FY26, down 33.19% from ₹26.18 crore in Q3 FY25, and also mentioned an exceptional item of ₹3.68 crore. The same report said revenue from operations rose 11.64% year-on-year to ₹117.74 crore.

Nine-month (9M FY26) picture: growth slower, profit down

For 9M FY26, the tabulated numbers showed operational income rising to ₹275.5 crore from ₹264.6 crore in 9M FY25. However, total expenses increased to ₹210.6 crore from ₹184.7 crore, which coincided with a decline in EBITDA to ₹64.9 crore from ₹79.9 crore.

At the bottom line, the same table showed PAT falling to ₹21.1 crore from ₹35.6 crore. Another market note cited a sharper nine-month net profit comparison, stating consolidated net profit declined 49.43% to ₹18 crore in 9M FY26 versus ₹35.60 crore in 9M FY25.

Stock reaction and what drove it

The stock move reported was a 9.04% decline to ₹200.35 after the Q3 FY26 result update. The sharp reaction aligned with what the quarter’s margin numbers indicate: revenue growth was positive, but costs increased faster, compressing profitability.

The same market update said total expenses increased 29.19% year-on-year to ₹92.88 crore during the quarter, highlighting that investors were looking beyond sales growth to the cost line and the effect of exceptional items.

Summary table: reported operating and profit metrics

Market impact: what the numbers imply for investors

The quarter shows a clear split between revenue momentum and profitability pressure. Operational income growth of 11.6% year-on-year in Q3 FY26 was met with a 28.4% rise in total expenses in the same comparison, which reduced EBITDA and PAT year-on-year. Margin compression was visible in the EBITDA margin drop from 41.90% to 33.14%.

From a market standpoint, the reported 9.04% fall in the stock price following the results suggests investors placed higher weight on the earnings decline and cost escalation than on the revenue increase. The presence of an exceptional item of ₹3.68 crore, as cited in a market report, also matters because it can affect comparability of profit numbers across periods.

Analysis: why Q3 FY26 matters beyond headline revenue growth

For hospitality companies, quarterly performance can be sensitive to seasonal demand and cost inflation, and Q3 FY26 highlights how fast-rising costs can dilute the benefit of higher occupancy or pricing. In Kamat Hotels’ case, revenue increased year-on-year, but EBITDA and PAT declined, pointing to operational leverage working in the opposite direction.

The nine-month numbers add context: revenue growth of about 4% in 9M FY26 was modest, while EBITDA and PAT declined in the same period, indicating profitability pressure was not limited to a single quarter. Investors tracking future quarters will likely focus on whether expense growth normalises relative to revenue growth and how exceptional items influence reported earnings.

Conclusion

Kamat Hotels’ Q3 FY26 update showed consolidated revenue around ₹118 crore with year-on-year growth near 12%, but lower EBITDA and PAT compared with Q3 FY25 as expenses increased sharply. The stock reaction, with a reported 9.04% fall to ₹200.35, reflected that margin compression and profit decline outweighed the positive sales trend. The company announced its Q3 FY 2025-26 results on 4 February, 2026, and the net profit figure was also referenced as ₹19.06 crore in a subsequent update dated 10 February, 2026.